07:34 AM EST, 12/20/2024 (MT Newswires) -- Aadi Bioscience ( AADI ) shares were up more than 24% premarket Friday after the company said it signed an exclusive license agreement for a portfolio of preclinical antibody-drug conjugates, or ADCs, and entered into deals that will raise up to $200 million.

The company said it agreed to sell Aadi Subsidiary, including its Fyarro assets, to Kaken Pharmaceutical for $100 million in cash under a stock purchase deal. The sale includes the rights to the Aadi name and trademark and is expected to close in H1 2025, according to Aadi.

Aadi also signed a subscription agreement with certain institutional investors for a $100 million private investment in public equity, or PIPE, financing to support the development and commercialization of the ADC portfolio. The company said it will sell about 21.6 million common shares at $2.40 apiece and pre-funded warrants to purchase up to approximately 20.1 million common shares at about $2.40 per warrant.

Under the license deal in collaboration with WuXi Biologics, Aadi was granted exclusive rights to certain patents and know-how related to three ADC programs in exchange for a $44 million upfront payment. Aadi said it also agreed to pay about $800 million in development and commercial milestone payments as well as single-digit royalties on sales.

The company said proceeds from the PIPE financing and the sale of Fyarro, along with its existing cash, will be used to fund operations into late 2028, including the clinical data readouts for the ADC portfolio.